TIDMPRU
RNS Number : 0967O
Prudential PLC
15 August 2017
15 August 2017
Prudential plc announces sale of broker-dealer network in the
US
Prudential plc ("Prudential"), the UK-based financial services
group, through its subsidiary National Planning Holdings, Inc.
("NPH") today sold its US independent broker-dealer network,
consisting of INVEST Financial Corporation, Investment Centers of
America, Inc., National Planning Corporation and SII Investments,
Inc., to LPL Financial LLC, the largest independent broker-dealer
in the US.
The transaction is structured as an asset sale, which includes
substantially all the business of the network, for an initial
purchase price of US$325 million, which may increase to a maximum
of approximately US$448 million subject to certain transition
criteria. The transaction has closed after receiving all necessary
regulatory approvals and the transition is expected to be completed
by the end of the first quarter of 2018.
Barry Stowe, Chairman and Chief Executive Officer of Prudential
plc's North American Business Unit, said:
"While we still very much believe in the independent
broker-dealer model, our primary strategy in North America is to
focus on being the leading manufacturer of retirement products. The
transaction with LPL Financial provides us with a compelling
opportunity to divest our ownership in the NPH network to a leading
independent broker-dealer well suited to support financial advisors
and their retail clients going forward."
Enquiries:
Media Investors/Analysts
+44 (0)20 7548 +44 (0)20 7548
Jonathan Oliver 3537 Raghu Hariharan 2871
+44 (0)20 7548 +44 (0)20 7548
Jonathan Miller 2776 Richard Gradidge 3860
+44 (0)20 3480
William Elderkin 5590
+44 (0)20 7548
Chantal Waight 3039
Notes to Editors:
About National Planning Holdings, Inc.
National Planning Holdings, Inc. (NPH) is a broker-dealer
holding company and an affiliate of Lansing, Mich.-based Jackson
National Life Insurance Company(R) (Jackson(R)). NPH serves as the
holding company for the independent broker-dealers INVEST Financial
CorporationÒ, Investment Centers of America, Inc., National
Planning CorporationÒ and SII Investments, Inc. Ò As of 30 June
2017, the member firms of the NPH network supported nearly 3,200
advisors across the country with over 1.5 million customer accounts
and approximately $124 billion in assets under management. NPH and
Jackson are wholly owned by Prudential plc (NYSE: PUK), a company
incorporated in England and Wales. Prudential plc is not affiliated
in any manner with Prudential Financial, Inc., a company whose
principal place of business is in the United States of America.
About LPL Financial LLC
LPL Financial LLC, a wholly owned subsidiary of LPL Financial
Holdings Inc. (NASDAQ: LPLA), is a leader in the retail financial
advice market and provided service to approximately $542 billion in
brokerage and advisory assets as of 30 June 2017. LPL Financial is
one of the fastest growing RIA custodians and the nation's largest
independent broker-dealer (based on total revenues, Financial
Planning magazine June 1996-2017), and the firm and its financial
advisors were ranked No. 1 in net customer loyalty in a 2016 Cogent
Reports(TM) study. LPL Financial provides proprietary technology,
comprehensive clearing and compliance services, practice management
programs and training, and independent research to more than 14,000
financial advisors and over 700 financial institutions, enabling
them to provide a range of financial services including wealth
management, retirement planning, financial planning and other
investment services to help their clients turn life's aspirations
into financial realities. As of 30 June 2017, financial advisors
associated with LPL Financial served more than 4 million client
accounts across the US as well as an estimated 46,000 retirement
plans with an estimated $138 billion in retirement plan assets.
Additionally, LPL Financial supports approximately 3,700 financial
advisors licensed and affiliated with insurance companies with
customized clearing, advisory platforms, and technology solutions.
LPL Financial and its affiliates have more than 3,400 employees
with primary offices in Boston, Charlotte, and San Diego.
About Prudential plc
Prudential plc and its affiliated companies constitute one of
the world's leading financial services groups, serving around 24
million insurance customers, with GBP635 billion of assets under
management (as at 30 June 2017). Prudential plc is incorporated in
England and Wales and is listed on the stock exchanges in London,
Hong Kong, Singapore and New York. Prudential plc is not affiliated
in any manner with Prudential Financial, Inc., a company whose
principal place of business is in the United States of America.
Forward-Looking Statements
This document may contain 'forward-looking statements' with
respect to certain of Prudential's plans and its goals and
expectations relating to its future financial condition,
performance, results, strategy and objectives. Statements that are
not historical facts, including statements about Prudential's
beliefs and expectations and including, without limitation,
statements containing the words 'may', 'will', 'should',
'continue', 'aims', 'estimates', 'projects', 'believes', 'intends',
'expects', 'plans', 'seeks' and 'anticipates', and words of similar
meaning, are forward-looking statements. These statements are based
on plans, estimates and projections as at the time they are made,
and therefore undue reliance should not be placed on them. By their
nature, all forward-looking statements involve risk and
uncertainty. A number of important factors could cause Prudential's
actual future financial condition or performance or other indicated
results to differ materially from those indicated in any
forward-looking statement. Such factors include, but are not
limited to, future market conditions, including fluctuations in
interest rates and exchange rates the potential for a sustained
low-interest rate environment, and the performance of financial
markets generally; the policies and actions of regulatory
authorities, including, for example, new government initiatives;
the political, legal and economic effects of the UK's decision to
leave the European Union; the impact of continuing designation as a
Global Systemically Important Insurer or 'G-SII'; the impact of
competition, economic uncertainty, inflation and deflation; the
effect on Prudential's business and results from, in particular,
mortality and morbidity trends, lapse rates and policy renewal
rates; the timing, impact and other uncertainties of future
acquisitions or combinations within relevant industries; the impact
of internal projects and other strategic actions failing to meet
their objectives; the impact of changes in capital, solvency
standards, accounting standards or relevant regulatory frameworks,
and tax and other legislation and regulations in the jurisdictions
in which Prudential and its affiliates operate; and the impact of
legal and regulatory actions, investigations and disputes. These
and other important factors may, for example, result in changes to
assumptions used for determining results of operations or
re-estimations of reserves for future policy benefits. Further
discussion of these and other important factors that could cause
Prudential's actual future financial condition or performance or
other indicated results to differ, possibly materially, from those
anticipated in Prudential's forward-looking statements can be found
under the 'Risk Factors' heading in its most recent Annual Report
and the 'Risk Factors' heading of Prudential's most recent annual
report on Form 20-F filed with the U.S. Securities and Exchange
Commission, as well as under the 'Risk Factors' heading of any
subsequent Prudential Half Year Financial Report. Prudential's most
recent Annual Report, Form 20-F and any subsequent Half Year
Financial Report are/will be available on its website at
http://www.prudential.co.uk/.
Any forward-looking statements contained in this document speak
only as of the date on which they are made. Prudential expressly
disclaims any obligation to update any of the forward-looking
statements contained in this document or any other forward-looking
statements it may make, whether as a result of future events, new
information or otherwise except as required pursuant to the UK
Prospectus Rules, the UK Listing Rules, the UK Disclosure and
Transparency Rules, the Hong Kong Listing Rules, the SGX-ST listing
rules or other applicable laws and regulations.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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